© Reuters.
(Reuters) – Uruguayan fintech dLocal, the South American nation’s first unicorn, noticed its shares plummet on Friday, after Argentine information outlet Infobae revealed an article saying the federal government was investigating it for a doable fraud of not less than $400 million.
Citing unnamed official sources, Infobae mentioned the Argentina authorities was investigating the fintech for “improper manouevers” and transfers overseas that may represent a fraud, with most of its earnings coming from companies bought to subsidiaries of the identical agency.
“The corporate operates as a mere instrument to reap the benefits of the alternate fee hole and to take {dollars} overseas with operations that aren’t mirrored within the accounting,” Infobae cited the sources as saying.
Infobae mentioned sources at Argentina’s customs company mentioned they had been contemplating reporting dLocal to the U.S. Securities and Change Fee (SEC).
dLocal issued a press release denying the article, claiming it had been the sufferer of “deceptive allegations” and that it might proceed to course of funds usually in Argentina.
dLocal and Argentina’s authorities didn’t instantly reply to Reuters’ request for remark.
Sergio Fogel, the corporate’s founder, nevertheless instructed native Uruguayan newspaper El Observador that the agency’s attorneys weren’t conscious of such a case: “We checked with the attorneys and there’s nothing within the official data.”
The fintech’s shares had been down 17% in afternoon buying and selling after dropping greater than 34% earlier within the day. Its inventory was already battered by allegations of fraud from short-seller Muddy Waters (NYSE:) final November, and much in need of its worth a 12 months in the past.
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